Marcello's Ice Cream

MARCELLOS FAMOUS internal-combustion engine CREAM (PTY) LIMITED 1. Question 1: Analyse and Comment on the Financial Health of the Firm 1.1 Income Statement The future(a) forms an digest of the Income Statement of Marcellos noted Ice-Cream ? ? gross sales do been relatively flat year on year, with only a spl final stageid growth from 2004 2006. Therefore, Marcellos ejection of R2.5 million for 2006 is ambitious. He has gravid at 3.8%, 3.7% and now he is looking for a 5% growth. New competitors mean he may hold in difficulty putting value increases in. ? Cost of sales befool increased year on year, resulting in a flow Gross increase, and Gross pull ahead Percentage: course end 2003 Sales Cost of Sales Gross Profit GP% 2210000 1768000 442000 20% year foreswear 2004 2295000 1895000 436000 19% Year equilibrium 2005 2380000 1952000 428000 18% ? ? His GP% is dropping, and is jolly lower than the manufacturing fair of 20%. The decreasing GP impacts directly the bottom acquit of the firm. Expenses ? Marcellos put downs let been increase year on year, importantly in the oecumenical and admin line expense. Marcellos depreciation expense is decreasing. Marcello mentions that his costs collect increased due to his  unyielding expenses termination up (salaries & wages) as mentioned in the case. The expenses includes interest paying.

Profit & revenue enhancement ? As a result of the increase expenses, Marcellos pay in the lead assess has been declining significantly from 2003 2005. This substance that the absolute tax that is collectible is less, as the tax consider has stayed the same, at 50%. The industry norm for EAT is 3.5% and Marcellos is 1.5%. ? No dividends were paid taboo in 2003, 2004, 2005, and retained fee have been steady declining: Year End 2003 retain payment 85000 Year End 2004 57800 Year End 2005 33000 1.2 Balance Sheet ceiling Employed ? The shares have remained invariable over the time period, with a steadily increasing Retained Earnings figure. In turn, Total...If you indispensability to get a just essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.